[Federal Register Volume 78, Number 185 (Tuesday, September 24, 2013)]
[Proposed Rules]
[Pages 58492-58500]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-23169]
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DEPARTMENT OF ENERGY
Federal Energy Regulatory Commission
18 CFR Part 40
[Docket No. RM13-16-000]
Generator Verification Reliability Standards
AGENCY: Federal Energy Regulatory Commission, DOE.
ACTION: Notice of proposed rulemaking.
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SUMMARY: Pursuant to section 215 of the Federal Power Act, the Federal
Energy Regulatory Commission (Commission) proposes to approve the
following Reliability Standards that were submitted to the Commission
for approval by the North American Electric Reliability Corporation,
the Commission-certified Electric Reliability Organization: MOD-025-2
(Verification and Data Reporting of Generator Real and Reactive Power
Capability and Synchronous Condenser Reactive Power Capability), MOD-
026-1 (Verification of Models and Data for Generator Excitation Control
System or Plant Volt/Var Control Functions), MOD-027-1 (Verification of
Models and Data for Turbine/Governor and Load Control or Active Power/
Frequency Control Functions), PRC-019-1 (Coordination of Generating
Unit or Plant Capabilities, Voltage Regulating Controls, and
Protection), and PRC-024-1 (Generator Frequency and Voltage Protective
Relay Settings). The proposed generator verification Reliability
Standards help ensure that verified data is available for power system
planning and operational studies by requiring the verification of
generator equipment needed to support Bulk-Power System reliability and
enhance coordination of important protection system settings.
The Commission proposes to approve, with modifications, the
associated implementation plans, violation risk factors and violation
severity levels. The Commission also proposes to approve the retirement
of existing Reliability Standards MOD-024-1 (Verification of Generator
Gross and Net Real Power Capability) and MOD-025-1 (Verification of
Generator Gross and Net Reactive Power Capability) prior to the
effective date of MOD-025-2.
DATES: Comments are due November 25, 2013.
ADDRESSES: You may submit comments, identified by docket number by any
of the following methods:
Agency Web site: http://ferc.gov. Documents created
electronically using word processing software should be filed in native
applications or print-to-PDF format and not in a scanned format.
Mail/Hand Delivery: Commenters unable to file comments
electronically must mail or hand deliver their comments to: Federal
Energy Regulatory Commission, Secretary of the Commission, 888 First
Street NE., Washington, DC 20426.
FOR FURTHER INFORMATION CONTACT: Mark Bennett (Legal Information),
Office of General Counsel, Federal Energy Regulatory Commission, 888
First Street NE., Washington, DC 20426, (202) 502-8524,
mark.bennett@ferc.gov.
Syed Ahmad (Technical Information), Office of Electric Reliability,
Federal Energy Regulatory Commission, 888 First Street NE., Washington,
DC 20426, (202) 502-8718, syed.ahmad@ferc.gov.
SUPPLEMENTARY INFORMATION:
Notice of Proposed Rulemaking
(Issued September 19, 2013)
1. Under section 215 of the Federal Power Act (FPA) \1\ the
Commission proposes to approve five Reliability Standards that were
submitted to the Commission for approval by the North American Electric
Reliability Corporation (NERC), the Commission-certified Electric
Reliability Organization (ERO): MOD-025-2 (Verification and Data
Reporting of Generator Real and Reactive Power Capability and
Synchronous Condenser Reactive Power Capability), MOD-026-1
(Verification of Models and Data for Generator Excitation Control
System or Plant Volt/Var Control Functions), MOD-027-1 (Verification of
Models and Data for Turbine/Governor and Load Control or Active Power/
Frequency Control Functions), PRC-019-1 (Coordination of Generating
Unit or Plant Capabilities, Voltage Regulating Controls, and
Protection), and PRC-024-1 (Generator Frequency and Voltage Protective
Relay Settings). The Commission proposes to approve, with
modifications, the associated implementation plans, violation risk
factors and violation severity levels. The Commission also proposes to
approve the retirement of existing Reliability Standards MOD-024-1 and
MOD-025-1 immediately prior to the effective date of MOD-025-2.
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\1\ 16 U.S.C. 824o (2006).
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2. The purpose of the proposed Reliability Standards is to ensure
that generators remain in operation during specified voltage and
frequency excursions; properly coordinate protective relays and
generator voltage regulator controls; and ensure that
[[Page 58493]]
generator models accurately reflect the generator's capabilities and
equipment performance. Proposed Reliability Standards MOD-026-1, MOD-
027-1, PRC-019-1 and PRC-024-1 are new whereas proposed Reliability
Standard MOD-025-2 consolidates two existing standards, MOD-024-1
(Verification of Generator Gross and Net Real Power Capability) and
MOD-025-1 (Verification of Generator Gross and Net Reactive Power
Capability) into one new Reliability Standard. Portions of proposed
Reliability Standards MOD-025-2 and PRC-024-1 respond to Commission
directives issued in Order No. 693.\2\
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\2\ See Mandatory Reliability Standards for the Bulk-Power
System, Order No. 693, FERC Stats. & Regs. ] 31,242, order on reh'g,
Order No. 693-A, 120 FERC ] 61,053 (2007).
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3. Collectively, the proposed Reliability Standards improve the
accuracy of model verifications needed to support reliability and
enhance the coordination of generator protection systems and voltage
regulating system controls. Such improvements should help reduce the
risk of generator trips and provide more accurate models for
transmission planners and planning coordinators to develop system
models and simulations.
4. In contrast to the greater than 20 MVA applicability threshold
for the three other proposed Reliability Standards in NERC's petition,
proposed standards MOD-026-1 and MOD-027-1 would exclude units rated
below 100 MVA (Eastern and Quebec Interconnections), 75 MVA (Western
Interconnection) and 50 MVA (ERCOT Interconnection). This difference in
applicability thresholds could exclude approximately 20 percent of
registered generator owners/operators from compliance. The Commission
seeks comment on whether the higher applicability thresholds limit the
overall effectiveness of the proposed Reliability Standards, especially
in areas with a high concentration of generators falling below the
thresholds.
5. Further, proposed Reliability Standard MOD-026-1 contains a
provision allowing transmission planners to compel certain generator
owners to comply with the proposed standard's Requirements if the
generator owners are deemed to have ``technically justified'' units,
even if the generators fall below the stated applicability threshold.
The Commission seeks comment on this proposed process, and also seeks
comment regarding whether this provision should be included in proposed
Reliability Standard MOD-027-1.
I. Background
Section 215 of the FPA and Order No. 693 Directives
6. Section 215 of the FPA requires a Commission-certified ERO to
develop mandatory and enforceable Reliability Standards, subject to
Commission review and approval. Specifically, the Commission may
approve, by rule or order, a proposed Reliability Standard or
modification to a Reliability Standard if it determines that the
Reliability Standard is just, reasonable, not unduly discriminatory or
preferential, and in the public interest.\3\ Once approved, the
Reliability Standards may be enforced by the ERO, subject to Commission
oversight, or by the Commission independently.\4\
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\3\ 16 U.S.C. 824o(d)(2).
\4\ Id. 824o(e)(3).
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7. Pursuant to section 215 of the FPA, the Commission established a
process to select and certify an ERO,\5\ and subsequently certified
NERC.\6\ On March 16, 2007, the Commission issued Order No. 693,
approving 83 of the 107 Reliability Standards filed by NERC. Because
MOD-024-1 and MOD-025-1, which NERC had included in its filing,
involved regional procedures that had not been submitted, the
Commission postponed either approving or remanding these standards
until NERC submitted additional information. However, the Commission
issued directives in Order No. 693 with respect to MOD-024-1 and MOD-
025-1 that NERC states are addressed in proposed Reliability Standard
MOD-025-2.
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\5\ Rules Concerning Certification of the Electric Reliability
Organization; and Procedures for the Establishment, Approval, and
Enforcement of Electric Reliability Standards, Order No. 672, FERC
Stats. & Regs. ] 31,204, order on reh'g, Order No. 672-A, FERC
Stats. & Regs. ] 31,212 (2006).
\6\ North American Electric Reliability Corp., 116 FERC ]
61,062, order on reh'g and compliance, 117 FERC ] 61,126 (2006),
aff'd sub nom. Alcoa, Inc. v. FERC, 564 F.3d 1342 (D.C. Cir. 2009).
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8. Reliability Standards MOD-024-1 and MOD-025-1 were ``fill-in-
the-blank'' Reliability Standards that required regional reliability
organizations to develop procedures to verify generator real and
reactive power capability, respectively. Regarding MOD-024-1, the
Commission directed NERC to clearly define the test conditions and
methodologies contained in the Reliability Standard, and also to
clarify the time period within which regional reliability organizations
must provide generator real power capability verification.\7\ For MOD-
025-1, the Commission directed NERC to clarify that MVAR capability
verifications should be made at multiple points over a generator unit's
operating range, and also directed NERC to clarify the time period
within which reactive power capability verifications are to be
provided.\8\
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\7\ Order No. 693, FERC Stats. & Regs. ] 31,242 at PP 1310-1311.
\8\ Id. PP 1321-1323.
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9. Two directives contained in Order No. 693 pertain to proposed
Reliability Standard PRC-024-1. When discussing NERC's proposed TPL
Reliability Standards, the Commission stated that NERC should use the
Nuclear Regulatory Commission's (NRC) voltage ride through requirements
when implementing Reliability Standards to ``assure that there is
consistency between the Reliability Standards and the NRC requirement
that the system is accurately modeled.'' \9\ The Commission further
directed NERC to explicitly require generators to be ``capable of
riding through the same set of Category B and C contingencies, as
required by wind generators in Order No. 661, or that those generators
that cannot ride through be simulated as tripping.'' \10\
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\9\ Id. P 1787.
\10\ Id.
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II. NERC Petition and Proposed Reliability Standards
A. NERC Petition
10. On May 30, 2013, NERC filed a petition seeking approval of
proposed Reliability Standards MOD-025-2, MOD-026-1, MOD-027-1, PRC-
019-1 and PRC-024-1. Four of the five Reliability Standards are new,
while existing Reliability Standards MOD-024-1 and MOD-025-1 were
merged into proposed Reliability Standard MOD-025-2. NERC also seeks
approval of the associated implementation plans, violation risk factors
and violation severity levels, and retirement of current Reliability
Standards MOD-024-1 and MOD-025-1 at midnight of the day immediately
prior to the effective date of MOD-025-2. NERC proposes to phase in
effective dates in stages over periods ranging from five years (for
MOD-025-2, PRC-019-1 and PRC-024-1) to ten years (for MOD-026-1 and
MOD-027-1).\11\ NERC states that ``these five proposed Reliability
Standards address generator verifications needed to support Bulk-Power
System reliability and will ensure that accurate data is verified and
made available for planning simulations.'' \12\
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\11\ NERC Petition, Exhibit B.
\12\ NERC Petition at 2.
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11. NERC explains that Bulk-Power System reliability benefits from
``good quality simulation models of power system equipment,'' and that
``model validation ensures the proper
[[Page 58494]]
performance of the control systems and validates the computer models
used for stability analysis.'' \13\ NERC further states that the
proposed Reliability Standards will enhance reliability because the
tests performed to obtain model data may reveal latent defects that
could cause ``inappropriate unit response during system disturbances.''
\14\ NERC also states that simulating the response of synchronous
machines and related control systems in sufficient detail is essential
for effective power system planning and operational studies.\15\ For
accurate simulations reflecting actual equipment performance covering a
range of disturbances, NERC states that models must not only contain
adequate information, they must also correspond to actual field
values.\16\
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\13\ Id.
\14\ Id. at 2-3.
\15\ Id. at 3.
\16\ Id.
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B. Proposed Reliability Standards
1. Reliability Standard MOD-025-2
12. Proposed Reliability Standard MOD-025-2 merges two existing
Reliability Standards, MOD-024-1 and MOD-25-1, and has the stated
purpose of ensuring the accuracy of generator information related to
gross and net real and reactive power capability and synchronous
condenser reactive power capability that is available for planning
models and bulk electric system reliability assessments.\17\ The
proposed Reliability Standard applies to generator owners and
transmission owners that own synchronous condensers, and has three
requirements and two Attachments. Attachment 1, incorporated into
Requirements R1.1, R2.1 and R3.1, specifies the periodicity for
performing real and reactive power capability verification and the
verification specifications for applicable facilities. Attachment 2,
which generator owners and transmission owners will use to report to
their transmission planners the information described in Attachment 1,
is incorporated into Requirements R1.2, R2.2 and R3.2.
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\17\ Reliability Standard MOD-025-2, Section A.3 (Purpose).
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13. NERC states that proposed Reliability Standard MOD-025-2
addresses the directives the Commission issued in Order No. 693.
Specifically, NERC states:
(1) Requirement R1, Part 1.2 specifies that a generator owner must
submit Attachment 2 or another form containing the same information to
its transmission planner within 90 calendar days of either the date the
data is recorded for a staged test or the date the data is selected for
verification using historical operational data; (2) Requirement R1,
Part 1.1 requires a generator owner to verify the real power capability
of its generating units as set forth in Attachment 1, including the
consideration of ambient conditions during the verification period; and
(3) Attachment 1, Sections 2.1 through 2.4, requires reactive power
capability verification at multiple points across a unit's operating
range.\18\
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\18\ NERC Petition at 10-12.
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2. Reliability Standard MOD-026-1
14. Proposed Reliability Standard MOD-026-1, which is applicable to
generator owners and transmission planners, is a new Reliability
Standard that has six requirements and an Attachment describing the
periodicity for excitation control system or plan volt/var function
model verification. NERC explains that the purpose of proposed
Reliability Standard MOD-026-1 is to ensure that detailed modeling of
generator excitation systems, essential for valid simulations in power
system stability studies, will be conducted, and that those models
accurately represent generator excitation control system or plant volt/
var control function behavior for bulk electric system reliability
assessments.\19\ Requirement R1 requires transmission planners to
provide generator owners with specified information within 90 days of a
written request, including instructions on how to obtain models, block
diagrams and/or data sheets and model data for any of the generator
owner's existing applicable unit specific excitation control system or
plant volt/var control function contained in the transmission planner's
dynamic database from the current (in-use) models. NERC explains that
Requirement R1 ensures that the transmission planner provides necessary
information to the generator owners so that they can provide a useable
model in an acceptable format. This further ensures that generator
owners can comply with Requirement R2 by providing relevant information
to transmission planners.\20\
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\19\ Id. at 14-16.
\20\ Id. at 15.
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15. Requirement R2 requires each generator owner to provide its
transmission planner with a verified generator excitation control
system or plant volt/var control function model that includes the data
and documentation specified in Requirement R2, Part 2.1. The
periodicity for this requirement is set forth in Attachment 1. The
purpose of Requirement R2 is to verify that the generator excitation
control system or plant volt/var control function model and the model
parameters used in dynamic simulations performed by the transmission
planner accurately represent the generator excitation control system or
plant volt/var control function behavior when assessing bulk electric
system reliability.\21\ Requirement R3 requires generator owners to
provide written responses to transmission planner requests within 90
days regarding unusable models, technical concerns and transmission
planner determinations that simulated excitation control system or
plant volt/var control function model responses do not match a recorded
response to a transmission system event. NERC explains that Requirement
R3 of proposed Reliability Standard MOD-026-1 ``provides response
requirements for a Generator Owner when it receives certain requests
from the Transmission Planner. This communication ensures that
Generator Owners have an obligation to respond in a timely fashion when
there are demonstrated problems with a model that was provided by the
Generator Owner in accordance with Requirement R2.'' \22\ Under
Requirement R4, generator owners are required to determine whether
changes to applicable units affect models provided pursuant to
Requirement R2, and to provide the transmission planner with revised
model data or plans to perform model verification.
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\21\ Id. at 16.
\22\ Id. at 17.
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16. Requirement R5 requires a generator owner to respond within 90
days to a ``technically justified unit request'' from its transmission
planner to perform a model review of a unit or plant, including details
for model verification or corrected model data. A footnote to
Requirement R5 states that ``Technical justification is achieved by the
Transmission Planner demonstrating that the simulated unit or plant
response does not match the measured unit or plant response.'' Also,
Applicability section 4.2.4 in MOD-026-1 states that facilities to
which the standard applies include ``For all Interconnections: A
technically justified unit that meets NERC registry criteria but is not
otherwise included in the above Applicability sections 4.2.1, 4.2.2, or
4.2.3 and is requested by the Transmission Planner.''
17. NERC explains that Requirement R5 allows transmission planners
to request that generator owners who otherwise are not covered by the
[[Page 58495]]
Applicability section (i.e., whose MVA ratings are lower than the
applicability thresholds specified in Section 4 of proposed Reliability
Standard MOD-026-1 but meet or exceed the Registry Criteria) to provide
model verifications or to correct model data.\23\ Requirement R6
requires transmission planners to provide written responses to
generator owners within 90 days of receiving a verified excitation
control system or plant volt/var control function model information
whether the model is usable or not in accordance with Requirement R2.
If it determines the model to be unusable, the transmission planner
must explain the technical basis for that decision.
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\23\ Id. at 18.
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3. Reliability Standard MOD-027-1
18. The stated purpose of proposed Reliability Standard MOD-027-1,
which is new and contains five Requirements and an Attachment, is to
verify that the turbine/governor and load control or active power/
frequency control model and the model parameters, used in dynamic
simulations that assess bulk electric system reliability, accurately
represent generator unit real power response to system frequency
variations.\24\ Requirement R1 requires transmission planners to
provide generator owners with guidance that will enable generator
owners to provide the information required in Requirements R2 and R4
within 90 days of a written request. Requirement R2 requires generator
owners to provide transmission planners with a verified turbine/
governor and load control or active power/frequency control model for
each applicable unit, including documentation and data in accordance
with the periodicity specified in MOD-027-1 Attachment 1. Attachment 1
(Turbine/Governor and Load Control or Active Power/Frequency Control
Model Periodicity) also contains a table listing verification
conditions and related actions required of generator owners.\25\
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\24\ Reliability Standard MOD-27-1, Section A.3 (Purpose).
\25\ NERC Petition at 20.
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19. Requirement R3 establishes communication requirements to ensure
that generator owners respond to transmission planner determinations
that a generator owner's model is not ``usable,'' or where there is a
difference between the model and three or more actual transmission
system events.\26\ Requirement R4 requires generator owners to provide
transmission planners with updates when changes occur to the turbine/
governor and load control or active power/frequency control system that
alter equipment response characteristics.\27\ Requirement R5 requires
transmission planners to inform generator owners within 90 days of
receiving model information (in accordance with Requirement R2) whether
the model is usable or not. If a model is unusable, the transmission
planner shall provide the generator owner with an explanation of the
technical basis for that decision. Also, Requirement R3 requires
generator owners to provide a written response within 90 days.\28\
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\26\ Id. at 21.
\27\ Id. at 22.
\28\ Id.
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4. Proposed Reliability Standard PRC-019-1
20. Proposed Reliability Standard PRC-019-1 is new and contains two
requirements intended to ensure that both generator owners and
transmission owners verify coordination of generating unit facility or
synchronous condenser voltage regulating controls, limit functions,
equipment capabilities and protection system settings.\29\ Requirement
R1 requires generator owners and transmission owners to coordinate the
voltage regulating system controls with the equipment capabilities and
settings of the applicable protection system devices and functions.\30\
Requirement R2 requires generator owners and transmission owners to
perform the coordination described in Requirement R1 to address
equipment or setting changes.\31\ The coordination required in proposed
Reliability Standard PRC-019-1 must be performed at least every five
years.
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\29\ Reliability Standard PRC-019-1, Section A.3 (Purpose).
\30\ NERC Petition at 23.
\31\ Id. at 24.
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5. Proposed Reliability Standard PRC-024-1
21. Proposed Reliability Standard PRC-024-1 is new and consists of
four Requirements and two Attachments. The stated purpose of PRC-024-1
is to ensure that generator owners set their generator protective
relays such that generating units remain connected during defined
frequency and voltage excursions.\32\ Requirement R1 requires generator
owners having generator frequency protective relaying activated to trip
their generating units to set their protective relaying to prevent
their generating units from tripping within the ``no trip zone'' of
PRC-024-1 Attachment 1 (unless one of three specified exceptions
applies). NERC explains that Attachment 1 contains tables with curve
data points for each Interconnection indicating the amount of time a
generator needs to remain connected at specific defined frequency
excursions.\33\ Requirement R2 addresses voltage excursions, requiring,
subject to four exceptions, generator owners to ensure that their
voltage protective relaying settings prevent their generating units
from tripping within the ``no trip zone'' described in PRC-024-1,
Attachment 2.
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\32\ Reliability Standard PRC-024-1, Section A.3 (Purpose).
\33\ NERC Petition at 25.
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22. NERC states that the standard drafting team believes the
voltage profile contained in Attachment 2 includes excursions that
would be expected under Category B and C contingencies. Therefore, NERC
asserts that by ensuring that generator units remain connected to the
grid during voltage excursions, Requirement R2 and Attachment 2 satisfy
the Commission directive issued in Order No. 693 to ``explicitly
require either that all generators are capable of riding through the
same set of Category B and C contingencies, as required by wind
generators in Order No. 661, or that those generators that cannot ride
through be simulated as tripping.'' \34\
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\34\ Id. at 29 (citing Order No. 693, FERC Stats. & Regs. ]
31,242 at P 1787).
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23. Requirement R3 of proposed Reliability Standard PRC-024-1
requires generator owners to document regulatory or equipment
limitations that would prevent them from satisfying the relay setting
criteria in Requirements R1 and R2. Generator owners must inform their
planning coordinator and transmission planner of such limitations
within 30 calendar days. According to NERC, the standard drafting team
believes that ``regulatory limitations'' include NRC requirements and,
therefore, Requirement R3 satisfies the Commission's guidance that
``NRC requirements should be used when implementing the Reliability
Standards.'' \35\
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\35\ Id. at 27-28 (citing Order No. 693, FERC Stats. & Regs. ]
31,242 at P 1787).
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24. Requirement R4 requires generator owners to provide their
planning coordinator or transmission planner with generator protection
trip settings associated with Requirements R1 and R2 within 60 days of
either a written request or a change to previously requested trip
settings.\36\
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\36\ Id. at 31.
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III. Discussion
25. Pursuant to section 215(d) of the FPA, the Commission proposes
to approve proposed Reliability Standards
[[Page 58496]]
MOD-025-2, MOD-026-1, MOD-027-1, PRC-019-1 and PRC-024-1, including the
associated implementation plan and proposed violation risk factors and
violations severity levels, as just, reasonable, not unduly
discriminatory or preferential, and in the public interest. The
proposed Reliability Standards help ensure that verified data is
available for power system planning and operational studies by
requiring the verification of generator equipment needed to support
Bulk-Power System reliability and enhance coordination of important
protection system settings. Also, proposed Reliability Standards MOD-
025-2 and PRC-024-1 satisfy relevant outstanding directives set forth
in Order No. 693. We also propose to approve the retirement of the
currently-effective standards MOD-024-1 and MOD-025-1 prior to the
effective date of MOD-025-2.
26. While we propose to approve the proposed Reliability Standards,
we seek comment on certain aspects of proposed Reliability Standards
MOD-026-1 and MOD-027-1. Specifically, we discuss the following issues
below: (A) The higher Megavolt Amperes (MVA) applicability threshold
for proposed Reliability Standards MOD-026-1 and MOD-027-1; (B) the
process for determining when it is ``technically justified'' for a
transmission planner to require a generator owner to provide model
reviews under MOD-026-1; (C) why the ``technically justified''
provision is not also included in MOD-027-1; and (D) assignment of
violation of severity levels.
A. Higher MVA Applicability Threshold in MOD-026-1 and MOD-027-1
27. The applicability thresholds in proposed Reliability Standards
MOD-026-1 and MOD-027-1 are higher than for the other three proposed
Reliability Standards, and could exclude approximately 20 percent of
generators from compliance.\37\ In contrast to the greater than 20 MVA
applicability thresholds set forth in the other three proposed
Reliability Standards in NERC's petition,\38\ MOD-026-1 and MOD-027-1
would exclude units rated below 100 MVA (Eastern and Quebec
Interconnection), 75 MVA (Western Interconnection) and 50 MVA (ERCOT
Interconnection).\39\
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\37\ See NERC Petition, Exhibit E (Summary of the Reliability
Standard Development Proceeding and Complete Record of Development
of Proposed Reliability Standard) section entitled ``Consideration
of Comments on Draft Standard'' at 91 indicating that the threshold
in the proposed standard would limit applicability of the standard
to 80 percent of installed MVA on an Interconnection basis.
\38\ Reliability Standard MOD-025-2, Section 4.2 (Facilities);
Reliability Standard PRC-019-1, Section 4.2 (Facilities); and
Reliability Standard PRC-024-1, Section 4 (Applicability).
\39\ Reliability Standard MOD-026-1, Section 4.2 (Facilities);
Reliability Standard MOD-027-1, Section 4.2 (Facilities).
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28. During the standard development process, several industry
stakeholders commented that the standard drafting team should ensure
that the applicability thresholds of MOD-026-1 and MOD-027-1 be aligned
with the other three proposed Reliability Standards. In response, the
standard drafting team stated that ``verification of excitation system
is expensive both from a monetary and human resource viewpoint.
Therefore, the [standard drafting team] believes that these
applicability thresholds will result in substantial accuracy
improvements to the excitation models and associated Reliability
Standards, while not unduly mandating costly and time-consuming
verification efforts.'' \40\ We seek comment as to whether excluding
approximately 20 percent of generators from the applicability of MOD-
026-1 and MOD-027-1, especially in areas with a high concentration of
generators falling below the thresholds, would (a) limit the
effectiveness of proposed Reliability Standards MOD-026-1 and MOD-027-1
or (b) adversely impact transmission planners' ability to reduce risk
to Bulk Power System reliability.
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\40\ NERC Petition, Exhibit E (Summary of the Reliability
Standard Development Proceeding and Complete Record of Development
of Proposed Reliability Standard) section entitled ``Consideration
of Comments on Draft Standard'' at 91.
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B. Process for Identifying ``Technically Justified'' Generating Units
in MOD-026-1
29. Proposed Reliability Standard MOD-026-1 applies to generating
units that are connected to the bulk electric system when ``technically
justified.'' Specifically, Applicability Section 4.2.4 allows a
transmission planner to compel a generator owner to provide model
reviews and related information in accordance with Requirement R5 if
the transmission planner's unit simulations do not match the generator
owner's measured unit data. Under such circumstances, generator owners
with ``technically justified'' units must comply with proposed
Reliability Standard MOD-026-1, even though the unit MVA rating is
below the stated MVA threshold for applicability.
30. While we agree with the intent of this section, the means by
which transmission planners would become aware of discrepancies between
simulated units and measured units, which forms the basis for
``technically justified'' determinations, is unclear. The technical
justification, or discrepancies between simulated units and measured
units, suggests that there should be some benchmark available in the
process by which transmission planners identify generator owners for
compliance with MOD-026-1. The Final Report on the August 2003 blackout
stated that ``the regional councils are to establish and begin
implementing criteria and procedures for validating data used in power
flow models and dynamic simulations by benchmarking model data with
actual system performance.'' \41\ The Commission seeks comment from
NERC and other interested parties as to whether the means or process
for transmission planners to determine whether a generator owner's unit
is ``technically justified'' is sufficiently clear and workable. We
further seek comment as to whether additional details regarding how the
process will be implemented should be included in an attachment to the
proposed Reliability Standard.
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\41\ U.S.-Canada Power System Outage Task Force (Task Force),
Final Report on the August 14, 2003 Blackout in the United States
and Canada: Causes and Recommendations (April 2004) (Final Blackout
Report), Recommendation 24. The Final Blackout Report is available
on the Internet at http://www.ferc.gov/industries/electric/indus-act/blackout.asp.
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C. Should Proposed Reliability Standard MOD-027-1 Include the
``Technically Justified'' Provision
31. Proposed Reliability Standard MOD-027-1 does not contain a
provision analogous to section 4.2.4 of MOD-026-1, whereby a
transmission planner may determine whether to subject a generator owner
with units falling below the stated applicability threshold to the
Requirements in proposed Reliability Standard MOD-026-1. We seek
comment as to whether the technical justification provision should also
be included in proposed Reliability Standard MOD-027-1 to provide an
opportunity for transmission planners to address discrepancies between
unit simulations and generator owners' measured unit data.
D. Violation Severity Levels
1. VSL for MOD-026-1, Requirement R6 and MOD-027-1, Requirement R5
32. For Requirement R6 of MOD-026-1 and Requirement R5 of MOD-027-
1, NERC proposes a ``severe'' violation severity level when a
transmission planner's written response that a Generation Owner's
verified model is useable ``omitted confirmation for all
[[Page 58497]]
specified model criteria'' in the requirement. NERC does not propose
any violation severity level for a violation of the last sentence of
these requirements: ``If the model is not useable, the [transmission
planner] shall provide a technical description of why the model is not
useable.'' Compliance with this sentence is equally important as
compliance with the other obligations of these Requirements. Lack of a
violation severity level for this type of violation is inconsistent
with our VSL Guideline 3 because the proposed violation severity levels
do not address all obligations in these Requirements. We propose to
direct that NERC submit a violation severity level that addresses a
violation of the last sentence of Requirement R6 of MOD-026-1 and
Requirement R5 of MOD-027-1.
2. VSL for PRC-024-1, Requirements R1 and R2
33. NERC proposes to assign a ``severe'' violation severity level
for a violation of Requirements R1 and R2 of PRC-024-1 when a generator
owner fails to set its generator frequency or voltage protective relays
so that they do not trip within the criteria listed within Requirements
R1 and R2 unless there is a documented and communicated regulatory or
equipment limitation per Requirement R3. We observe that Requirements
R1 and R2 of PRC-024-1 include three and four bulleted exceptions,
respectively, to the requirement that the generator frequency or
voltage protective relays not trip applicable generating unit(s) within
the ``no-trip zone'' of Attachment 1 or 2 to that standard. For
Requirements R1 and R2, only the third and fourth exception,
respectively, relate to a regulatory or equipment limitation in
accordance with Requirement R3. As a result, the wording of the
violation severity level for Requirements R1 and R2 could be read to
mean that a generator owner that set generator frequency or voltage
protective relaying to trip within the ``no-trip zone'' based on either
the first or second exception in Requirement R1 and either the first,
second or third exception in R2, violated that Requirement with a
severe violation severity level. To avoid that interpretation, NERC
should confirm in its comments that a generator owner will not violate
Requirement R1 or R2 if it sets generator frequency or voltage
protective relaying to trip within the ``no-trip zone'' based upon the
exceptions for Requirements R1 and R2.
IV. Information Collection Statement
34. The following collection of information contained in the
Proposed Rule is subject to review by the Office of Management and
Budget (OMB) under section 3507(d) of the Paperwork Reduction Act of
1995 (PRA).\42\ OMB's regulations require that OMB approve certain
reporting and recordkeeping requirements (collections of information)
imposed by an agency.\43\ Upon approval of a collection of information,
OMB will assign an OMB control number and expiration date. Respondents
subject to the filing or recordkeeping requirements of this rule will
not be penalized for failing to respond to these collections of
information unless the collections of information display a valid OMB
control number.
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\42\ 44 U.S.C. 3507(d) (2006).
\43\ 5 CFR 1320.11 (2013).
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35. The Commission will submit these reporting and recordkeeping
requirements to OMB for its review and approval under section 3507(d)
of the PRA. Comments are solicited on the Commission's need for this
information, whether the information will have practical utility, the
accuracy of the provided burden estimate, ways to enhance the quality,
utility, and clarity of the information to be collected, and any
suggested methods for minimizing the respondents' burden, including the
use of automated information techniques.
36. This Notice of Proposed Rulemaking proposes to approve five
proposed Reliability Standards: MOD-025-2, MOD-026-1, MOD-027-1, PRC-
019-1 and PRC-024-1. Proposed Reliability Standard MOD-025-2 would
replace currently effective Reliability Standards MOD-024-1 and MOD-
025-1. In Order No. 693, the Commission did not approve or remand MOD-
024-1 and MOD-025-1, as they were identified as ``fill-in-the-blank''
Reliability Standards for which NERC had not submitted regional
procedures.
37. Public Reporting Burden: The burden and cost estimates below
are based on the increase in the reporting and recordkeeping burden
imposed by the proposed Reliability Standards. Our estimate of the
number of respondents affected is based on the NERC Compliance Registry
as of July 30, 2013.\44\ According to the Compliance Registry, NERC has
registered 901 generator owners within the United States. Currently,
synchronous condensers are not included in the NERC Compliance
Registry, and the standard drafting team stated that the number of
transmission owners who own synchronous condensers is extremely low. We
seek NERC and industry comment regarding the number of synchronous
condensers currently in use (including confidential data, if
necessary).
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\44\ NERC Compliance Registry (July 30, 2013), available at
http://www.nerc.com/pa/comp/Registration%20and%20Certification%20DL/NERC_Compliance_Registry_Matrix_Summary20130730.pdf.
\45\ GO = Generator Owner, TP = Transmission Planner.
Assuming 10 generators per generator owner, using EIA-860 2012
generator data (http://www.eia.gov/electricity/data/eia860/) total
number of units > 20 MW are 7,379, which results in 738 generator
owners.
\46\ The estimates for cost per hour are derived as follows:
$52/hour, the average of the salary plus benefits for an
engineer, from Bureau of Labor and Statistics at http://bls.gov/oes/current/naics3_221000.htm.
$70/hour, the average of the salary plus benefits for a manager
and an engineer, from Bureau of Labor and Statistics at http://bls.gov/oes/current/naics3_221000.htm.
$28/hour, based on a Commission staff study of record retention
burden cost.
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38. The burden estimates reflect the standards and the number of
affected entities (e.g., the generator owner's one-time burden to
develop testing procedures, verification process, and process for
collection of data). Estimates for the additional burden imposed by the
NOPR, if approved as a final rule in RM13-16, follow.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Number of Number of Average
FERC-725G respondents responses per burden hours Total annual Total annual cost \46\
\45\ respondent per response burden hours
(1) (2) (3) (1)x(2)x(3)
--------------------------------------------------------------------------------------------------------------------------------------------------------
PRC-019-1 (Coordination of Generating Unit or Plant Capabilities, Voltage Regulating Controls, and Protection)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Develop coordination and relay settings procedures........ 738 1 8 5,904 $307,008 one-time ($52/hr).
GO
[[Page 58498]]
Relay Settings............................................ 738 1 8 5,904 413,280 (70/hr).
GO
Evidence Retention \46\................................... 738 1 1 738 20,664 (28/hr).
GO
-------------------------------------------------------------
TOTAL................................................. .............. .............. .............. 12,546 740,952
--------------------------------------------------------------------------------------------------------------------------------------------------------
PRC-024-1 (Generator Frequency and Voltage Protective Relay Settings)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Develop coordination and relay settings procedures........ 738 1 8 5,904 307,008 one-time (52/hr).
GO
Relay Settings............................................ 738 1 8 5,904 413,280 (70/hr).
GO
Evidence Retention \46\................................... 738 1 1 738 20,664 (28/hr).
GO
-------------------------------------------------------------
TOTAL................................................. .............. .............. .............. 12,546 740,952
--------------------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------------------
Number of Number of Average
FERC-725L respondents responses per burden hours Total annual Total annual cost \46\
\45\ respondent per response burden hours
(1) (2) (3) (1)x(2)x(3)
--------------------------------------------------------------------------------------------------------------------------------------------------------
MOD-025-2 (Verification and Data Reporting of Generator Real and Reactive Power Capability and Synchronous Condenser Reactive Power Capability)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Develop testing procedures, verification process, and 738 1 8 5,904 (one- $307,008 one-time ($52/hr).
process for collection of data....................... GO time)
Attachment 2.......................................... 738 1 6 4,428 309,960 (70/hr).
GO
Evidence Retention \46\............................... 738 1 1 738 20,664 (28/hr).
GO
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TOTAL............................................. .............. .............. .............. 11,070 637,632
--------------------------------------------------------------------------------------------------------------------------------------------------------
Develop testing procedures, verification process, and 356 1 8 2,848 (one- 148,096 one-time (52/hr).
process for collection of data....................... GO time)
Instructions for obtaining excitation control system 187 1 8 1,496 104,720 (70/hr).
or plant voltage/variance control function model..... TP
Documentation on generator verification............... 356 1 8 2,848 199,360 (70/hr).
GO
Evidence Retention \46\............................... 543 1 1 543 15,204 (28/hr).
GO and TP
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TOTAL................................................. .............. .............. .............. 7,735 467,380
--------------------------------------------------------------------------------------------------------------------------------------------------------
MOD-027-1 (Verification of Models and Data for Turbine/Governor and Load Control or Active Power/Frequency Control Functions)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Develop testing procedures, verification process, and 356 1 8 2,848 (one- $148,096 one-time (52/hr).
process for collection of data....................... GO time)
Instructions for obtaining turbine/governor and load 187 1 8 1,496 104,720 (70/hr).
control or active power/frequency control model...... TP
Documentation on generator verification............... 356 1 8 2,848 199,360 (70/hr).
GO
Evidence Retention \46\............................... 543 1 1 543 15,204 (28/hr).
GO and TP
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[[Page 58499]]
TOTAL............................................. .............. .............. .............. 7,735 467,380
--------------------------------------------------------------------------------------------------------------------------------------------------------
TOTAL for RM13-16............................. .............. .............. .............. .............. $3,054,296 (1,837,080 without
one-time costs).
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Title: Mandatory Reliability Standards for the Bulk-Power System
Action: Proposed revisions to FERC-725A.
OMB Control No: 1902-0244
Respondents: Businesses or other for-profit institutions; not-for-
profit institutions.
Frequency of Responses: One-time, every five years, and every ten
years.
Necessity of the Information: The proposed approval of the five
Reliability Standards noted above implements the Congressional mandate
of the Energy Policy Act of 2005 to develop mandatory and enforceable
Reliability Standards to better ensure the reliability of the nation's
Bulk-Power System.
Internal Review: The Commission has reviewed the proposed approval
to the Reliability Standards and made a determination that its action
is necessary to implement section 215 of the FPA. The Commission has
assured itself, by means of its internal review, that there is
specific, objective support for the burden estimate associated with the
information requirements.
39. Interested persons may obtain information on the reporting
requirements by contacting the following: Federal Energy Regulatory
Commission, 888 First Street NE., Washington, DC 20426 [Attention:
Ellen Brown, Office of the Executive Director, email:
DataClearance@ferc.gov, phone: (202) 502-8663, fax: (202) 273-0873].
40. For submitting comments concerning the collection of
information and the associated burden estimates, please send your
comments to the Commission, and to the Office of Management and Budget,
Office of Information and Regulatory Affairs, Washington, DC 20503
[Attention: Desk Officer for the Federal Energy Regulatory Commission,
phone: (202) 395-4638, fax: (202) 395-7285]. For security reasons,
comments to OMB should be submitted by email to: oira_submission@omb.eop.gov. Comments submitted to OMB should include Docket
Number RM13-16-000 and OMB Control Number 1902-0252 and 1902-0261.
V. Regulatory Flexibility Act Certification
41. The Regulatory Flexibility Act of 1980 (RFA) \47\ generally
requires a description and analysis of proposed rules that will have
significant economic impact on a substantial number of small entities.
The RFA mandates consideration of regulatory alternatives that
accomplish the stated objectives of a proposed rule and that minimize
any significant economic impact on a substantial number of small
entities. The Small Business Administration's (SBA's) Office of Size
Standards develops the numerical definition of a small business.\48\
The SBA has established a size standard for electric utilities, stating
that a firm is small if, including its affiliates, it is primarily
engaged in the transmission, generation and/or distribution of electric
energy for sale and its total electric output for the preceding twelve
months did not exceed four million megawatt hours.\49\
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\47\ 5 U.S.C. 601-612 (2006).
\48\ 13 CFR 121.101 (2013).
\49\ 13 CFR 121.201, Sector 22, Utilities & n.1.
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42. Proposed Reliability Standards MOD-025-2, MOD-026-1, MOD-027-1,
PRC-019-1 and PRC-024-1, MOD-025-2 help ensure that generators remain
in operation during specified voltage and frequency excursions,
properly coordinate protective relays and generator voltage regulator
controls, and ensure that generator models accurately reflect the
generator's capabilities and equipment performance. Comparison of the
NERC Compliance Registry with data submitted to the Energy Information
Administration on Form EIA-861 indicates that, of the 901 generator
owners in the United States registered by NERC, 49 qualify as small
entities (5.4 percent) and of the 184 of the transmission planners in
the United States registered by NERC, 42 qualify as small entities (22
percent). The Commission estimates that the small entities to whom the
proposed Reliability Standards PRC-019-1, PRC-024-1 and MOD-025-1
applies will incur compliance \50\ and record keeping costs \51\ of
$655,228 ($13,372 per generator owner). For the proposed Reliability
Standards MOD-026-1 and MOD-027-1, the Commission estimates that the
small generator owner entities (22) will incur compliance and record
keeping costs of $83,072 ($3,776 per generator owner). This will result
in a total compliance and record-keeping cost for generator owners of
$686,870 ($14,018 per entity). Additionally, small transmission planner
entities (42) will incur compliance and record keeping costs \52\ of
$47,040 ($1,120 per transmission planner).
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\50\ Assuming 50 hours per generator owner for relay settings/
testing based on $70/hour.
\51\ This cost came from the above PRC-019-1, PRC-024-1, and
MOD-025-2 tables.
\52\ This cost came from the above MOD-026-1 and MOD-027-1
tables.
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43. The Commission does not consider the estimated costs per small
entity to have a significant economic impact for a substantial number
of small entities. Accordingly, the Commission certifies that this
proposed rulemaking will not have a significant economic impact on a
substantial number of small entities. The Commission seeks comment on
this certification.
VI. Environmental Analysis
44. The Commission is required to prepare an Environmental
Assessment or an Environmental Impact Statement for any action that may
have a significant adverse effect on the human environment.\53\ The
Commission has categorically excluded certain actions from this
requirement as not having a significant effect on the human
environment. Included in the exclusion are rules that are clarifying,
corrective, or procedural or that do not substantially change the
effect of the regulations being amended.\54\ The actions proposed here
fall within this categorical exclusion in the Commission's regulations.
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\53\ Regulations Implementing the National Environmental Policy
Act of 1969, Order No. 486, FERC Stats. & Regs., Regulations
Preambles 1986-1990 ] 30,783 (1987).
\54\ 18 CFR 380.4(a)(2)(ii).
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[[Page 58500]]
VII. Comment Procedures
45. The Commission invites interested persons to submit comments on
the matters and issues proposed in this notice to be adopted, including
any related matters or alternative proposals that commenters may wish
to discuss. Comments are due November 25, 2013. Comments must refer to
Docket No. RM13-16-000, and must include the commenter's name, the
organization they represent, if applicable, and their address in their
comments.
46. The Commission encourages comments to be filed electronically
via the eFiling link on the Commission's Web site at http://www.ferc.gov. The Commission accepts most standard word processing
formats. Documents created electronically using word processing
software should be filed in native applications or print-to-PDF format
and not in a scanned format. Commenters filing electronically do not
need to make a paper filing.
47. Commenters that are not able to file comments electronically
must send original and 14 copies of their comments to: Federal Energy
Regulatory Commission, Secretary of the Commission, 888 First Street
NE., Washington, DC 20426.
48. All comments will be placed in the Commission's public files
and may be viewed, printed, or downloaded remotely as described in the
Document Availability section below. Commenters on this proposal are
not required to serve copies of their comments on other commenters.
VIII. Document Availability
49. In addition to publishing the full text of this document in the
Federal Register, the Commission provides all interested persons an
opportunity to view and/or print the contents of this document via the
Internet through the Commission's Home Page (http://www.ferc.gov) and
in the Commission's Public Reference Room during normal business hours
(8:30 a.m. to 5:00 p.m. Eastern time) at 888 First Street NE., Room 2A,
Washington DC 20426.
50. From the Commission's Home Page on the Internet, this
information is available on eLibrary. The full text of this document is
available on eLibrary in PDF and Microsoft Word format for viewing,
printing, and/or downloading. To access this document in eLibrary, type
the docket number excluding the last three digits of this document in
the docket number field.
51. User assistance is available for eLibrary and the Commission's
Web site during normal business hours from the Commission's Online
Support at (202) 502-6652 (toll free at 1-866-208-3676) or email at
ferconlinesupport@ferc.gov, or the Public Reference Room at (202) 502-
8371, TTY (202) 502-8659. Email the Public Reference Room at
public.referenceroom@ferc.gov.
By the direction of the Commission.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2013-23169 Filed 9-23-13; 8:45 am]
BILLING CODE 6717-01-P